ABL Space Systems Never Launched a Rocket — Now It’s Pivoting to Missile Defence as Long Wall

On 19 February, Dan Piemont, CEO of Long Wall, formerly ABL Space Systems, announced the completion of the company’s transformation and a radical change of strategy. For 8 years, the company has attracted significant investment to develop affordable rocket systems to launch small satellites but has never been able to launch any of its rockets. The team will now focus on missile defence.

ABL becomes Long Wall

The company’s move into missile defence could be a strategy to enter a less saturated market segment. Traditionally, the defence market offers higher rates of return and more predictable funding than the highly competitive and cost-sensitive commercial launch market.

The Pentagon is expected to increase investment in the interceptor missile development and testing sector amid tensions with countries such as China, North Korea and Iran.

Long Wall has not yet disclosed any signed contracts or customers. However, Piemont says the Ministry of Defence has clarified that it wants more cost-effective solutions for hypersonic flight testing and missile defence.

Under its new strategy, the company will offer the Pentagon its RS1 missile as a target for military testing and affordable options for containerised missile defence systems.

What Are The Reasons For This Shift In Strategy?

Some observers agree that ABL’s decision may be right, given the market dynamics and ongoing consolidation in the launch services sector.

Stiff competition from established players such as SpaceX and Rocket Lab, a series of high-profile technical failures over the past two years that destroyed the RS1 rocket and much of its equipment, and accumulated financial problems eventually forced ABL to change its name and business model.

Indeed, investor pressure played a role. Venture capitalists like Venrock may have influenced the turnaround due to dissatisfaction with ABL’s poor performance in the commercial launch market.

At the same time, the move is in line with national defence priorities and could provide a more stable revenue stream thanks to government contracts. Defence contracts offer long-term stability and funding, which could be critical to ABL’s survival and growth after failed commercial launches.

Credit should be given to the company’s competent PR strategy and reputation management. Rebranding as Long Wall helps ABL distance itself from its past failures in commercial launches, allowing it to rebuild its public image and redefine itself as a defence-focused innovator.

Following this strategic pivot, Long Wall closed its El Segundo office and Mojave test site and consolidated operations at its Long Beach facility.

ABL’s turnaround may inspire other space technology companies to explore defence applications, potentially leading to missile technology and defence systems innovation.

ABL: The Startup That Did Not Take Off

ABL Space Systems was founded in 2017 by former SpaceX engineers. The company, headquartered in El Segundo, California, sought to capitalise on the growing demand for small satellite deployments.

Its leading development, the RS1 rocket, is designed to cost-effectively launch small satellites for government and commercial organisations.

The RS1 is a 26.8 metre tall, two-stage lightweight launch vehicle capable of launching up to 1,350 kg into Low Earth Orbit (LEO) using E2 engines (nine engines on the first stage and one on the second stage).

ABL offers a containerised launch system that can be deployed anywhere a suitable site exists. This provides much greater flexibility and speed of deployment.

This modular approach has caught the attention of investors and helped the company raise more than $544 million in several rounds of funding. The bulk of the money, including a significant investment from Lockheed Martin, went towards expanding its services and infrastructure, including three test sites and two factories.

At one point, the privately held company was valued at $2.4 billion, and Lockheed acquired a package of up to 58 RS1 vehicle launches in 2021.

Recent Problems and Fails

However, despite a successful start, ABL has faced several significant setbacks recently, which experts believe led to the decision to exit the launch services market.

ABL had initially planned to conduct the first launch back in 2021 but postponed it several times due to technical issues and the effects of the COVID-19 pandemic

Eventually, during the initial launch attempt on 10 January 2023 from the Kodiak Launch Complex) (KLC) off Alaska’s coast, the RS1 rocket lost power shortly after liftoff, causing it to crash into the launch pad.

The debut flight was unsuccessful due to an anomaly that caused the engines to shut down prematurely. The rocket failed to deliver two satellites into low Earth orbit and fell back to the launch pad, where it exploded.

After redesigns and modifications, a second ABL attempt was also unsuccessful.

An investigation revealed that the launcher’s design contributed to the engine compartment catching fire, resulting in a loss of power.

On 19 July 2024, the company conducted a fire test of the E2 engines on the first stage of the RS1 rocket. During the test, a faulty pressure sensor caused a sudden pressure drop, which caused the engines to shut down just half a second after launch.

Despite the engines being shut down, a fire broke out under the bottom of the rocket due to fuel leaks from two engines. The fire could not be completely extinguished with either water or inert gas. Water from mobile tanks ran out nearly 12 minutes after the fire started, allowing the fire to engulf the entire structure and damage the control systems.

The fire also damaged the launcher and electrical and plumbing connections. However, the main structure and other ground equipment survived.

These incidents further delayed the rocket’s operational schedule, questioned reliability, and burdened the company’s finances.

ABL Space: Strategic Pivot

At first, the company still planned to conduct additional testing at the Mojave Air and Space Port Proving Ground in California to identify and fix potential malfunctions. Immediate plans included repairing damaged equipment and continuing work on the next RS1 rocket.

However, in August, ABL Space management laid off a significant portion of its workforce, citing the need to cut costs after losing a rocket in static firing tests.

In a LinkedIn post on 30 August, Harry O’Hanley, ABL’s chief executive, said the company was laying off an unspecified number of people. He attached an email to company employees after a general meeting to discuss the layoffs.

‘In 6.5 years, you have designed a launch vehicle from scratch and brought two rockets to the pad. Few other teams have done that, let alone take on a scale as large as you,’ he wrote to the departing employees. ‘Take pride in this work because nothing can ever take these accomplishments away from you.’

In November, the company announced for the first time that it was leaving the commercial launch market and intending to change its strategy to missile defence.

Founder and president of ABL Space Systems announced the decision on LinkedIn, adding, ‘We are consolidating our operational presence and parting ways with some talented members of our team.’ He said companies interested in hiring great people in Los Angeles or Mojave, California, should contact us.”

Conclusions

Although Long Wall’s name change is publicly justified by operational challenges and market opportunities in missile defence, factors such as investor pressure, strategic positioning and reputational recovery played a significant role in the decision.

ABL Space’s failure highlights the difficulties faced by smaller launch providers. While the company raised over $500 million in venture capital funding and secured contracts with major clients such as Amazon Project Kuiper and Lockheed Martin, it could not overcome the challenges. It was forced to exit the launch services market.

Notably, this turnaround aligns with the broader trend of space startups moving into defence work amid challenges in the commercial market. The reason may be the anticipation of lucrative opportunities driven by rising geopolitical tensions and increased investment in defence.